Retail sales numbers and myriad surveys are giving some glimpses into how Covid-19 has changed consumer behaviour. Financial pressure and job insecurity are making many consumers to redistribute spending and save in certain areas. A Nielsen study showed spending patterns will particularly affect the areas of fashion, takeaways, travel/holidays and replacement purchases. People may now be planning more road trips instead of air travel. Wardrobe upgrades may take a backseat, and people are expressing a desire to work more from home and cook more at home in future. But there is demand for home furnishing stuff, books, music and sporting goods.
MARKET CUES: Where do we stand >>>  | Nifty futures on Singapore Exchange traded 72 points lower at 7 am (IST) signalling a weak start ahead on Dalal Street |
| On Wednesday, Nifty's fall was the third in last five sessions, when the NSE barometer could not close above the psychological level after claiming it in intraday trade. This does not bode well for the bulls. Analysts said Dark Clouds are looming as the weekly scale indicates that the upside will remain capped |
| Stocks in other Asian markets dropped as optimism over policy stimulus gave way to recovery concerns caused by rising infection numbers in some locations. Shares fell in Japan, Australia and Hong Kong as the global equity rally seen earlier this week continued to show signs of fatigue. |
| US stocks erased earlier gains on Wednesday, as new coronavirus outbreaks in Beijing and rising cases in the US spooked investors. The Dow fell 170 points, or 0.65%, snapping a three-day winning streak, while the S&P500 lost 11.25 points, or 0.36%, and the Nasdaq 14.66 points, or 0.15% |
| The rupee pared early losses and settled 4 paise higher at 76.16 against the US dollar on Wednesday tracking gains in the domestic equity market and a weakening US dollar. |
| The dollar held onto gains as growing concerns about a rise in coronavirus cases underpinned safe-haven demand for the US currency. The British pound traded in a narrow range before a BoE meeting. The yen edged up slightly while the sterling inched down and was on course for a third day of losses. |
| Oil prices fell more than 1% in early trade on Thursday as a spike in new coronavirus cases in China and the US renewed fears that people would stay home and stall a recovery in fuel demand. WTI crude futures slipped 1.6%, or 60 cents, to $37.36 a barrel while Brent futures fell 1.1%, or 45 cents, to $40.26 |
| Gold and silver prices in India fell on Wednesday after a big jump in the previous session. On MCX, August gold futures slipped nearly 1% to Rs 47,114 per 10 gm after surging about Rs 600 in the previous session. Silver fell half a per cent to Rs 48,125 a kg, following a Rs 900 gain in the previous session. Globally too, gold prices fell pressured by a stronger dollar and as optimism over a potential COVID-19 drug |
| LOOK WHO'S |  |
Auto firms seeing demand revival… Wheels are moving again for India's auto industry — the top three car makers are seeing bookings and enquiries rise to 85% of pre-Covid levels. This reflects pent-up demand, says the industry. Maruti Suzuki, Hyundai and Mahindra & Mahindra — which account for 75% of the overall market — have witnessed bookings of roughly 200,000 units over a month-and-half, indicating a swift pick-up. Typically, 85-90% of bookings translate into sales. Even if conversion goes down somewhat, executives said sales will still be healthy.
Read More RIL bonds go one up on PSU ones… Returns on the foreign currency bonds of RIL exceeded those of even sovereign-backed papers in the first half of 2020 after India's biggest company by all financial yardsticks lowered its debt through a record ten rounds of equity sale at Jio Platforms. The dollar-denominated ten-year bonds have rallied 5.1% until June 16 compared with 1.7% at IRFC and 0.9% for NTPC bonds since the beginning of the year. RIL bonds, issued on August 26, 2015, will mature in mid-January 2026.
Read More Hotels doles out discount to draw tourists… Tourism may be impossible now amidst lockdown and fear of Covid-19, but that's not stopping hotels from doling out discounts, freebies and other offers to woo consumers. ITC Hotels has launched the Welcombreak all-in getaway package where customers can book now and pay later with bookings valid for stays till October 31. Starting at Rs 5,299 plus taxes, the offer is valid for ITC hotels. Indian Hotels has launched its 4D travel experience package, Dream, Drive, Discover, Delight, which includes all meals besides spa experiences and guest transfers through 'sanitised cars' at 'special rates'.
Read More Govt set to allow more flights… The government has decided to allow airlines to increase the number of flights by a third to 44% of the pre-Covid-19 levels, although carriers are operating only 65% of the total daily approved flights. The aviation ministry is likely to issue an order in this regard on Thursday and ask airlines to operate more flights. While the government is set to allow more flights, airlines have not been able to utilise the existing approvals. Passenger loads on these flights are also a concern, as airlines have been able to fill up only half the seats on the flights.
Read More | AND WHO'S |  |
Border hostility to draw curbs on China… Border hostilities could invite tighter scrutiny of bids by Chinese companies for key infrastructure projects. Offers by Chinese companies for project implementation or the supply of heavy machinery are likely to be vetted more intensely from a security standpoint. The government has in any case made Atmanirbhar Bharat Abhiyan (self-reliant India mission) the cornerstone of its economic stimulus programme. The government will also bar Chinese companies from providing any telecom equipment to state-run phone companies and may prohibit private mobile operators from using gear supplied by the likes of Huawei and ZTE. Besides place tighter restrictions are likely to be placed on the import of 371 items — ranging from toys and plastic goods to sports items, and furniture — which worth $127 billion.
Read More Bolton spills the beans for Trump… Former US National Security Advisor John Bolton writes in a new book that President Donald Trump asked Chinese leader Xi Jinping to help him win re-election by buying more US farm products, according to an excerpt published by the Wall Street Journal. The disclosure is part of a devastating portrayal of Trump's conduct of foreign policy by Bolton, the most senior official in this White House so far to publish an account of his experience. The book is poised to further burden Trump's already struggling effort to secure a second term.
Read More Indian MFs turn defensives… Domestic fund managers are shifting their portfolio exposure away from growth stocks to defensive bets. Their allocation to sectors including consumer, healthcare, telecom, technology, and utilities reached a multi-quarter high of 35.5% in May 2020, an increase of 810 bps from the December 2019 quarter, as per data compiled by Motilal Oswal. The consumer and healthcare sectors together formed 50% of the defensive exposure of mutual funds in May 2020.
Read More Meanwhile... RBI to redefine home financing… RBI has proposed tougher rules for housing finance companies, including lending and investment curbs in group entities to prevent conflict of interest, while setting thresholds to identify the bigger players that are systemically important to the mortgage industry. In parallel, the central bank looks to change the definition of 'housing finance' and has proposed to include loans to builders for construction of residential dwelling units, schools and hospitals within its purview, while excluding loans against property from it.
Read More 
Buy
No comments:
Post a Comment